Now, when I say competition, I don’t mean direct competition. Think about what you are trying to do to make money (buying and selling 2nd hand mobile phones) and what other places (websites) are doing. If you simply do a google search “buying used cell phones online” you will see at least 6 legitimate websites that are essentially offering the same service as you. They are offering to pay money to buy peoples used cellphones on a much larger scale through a website. First of all if this doesn’t show there is some money to be made then I don’t know what will convince you. Anyway, the most important thing that I want you to take away from all this are the PRICES LISTED for used cell phones.
Lets do some research
I am currently looking to buy a new cell phone (could be a free give away coming….hint…hint) and the one that has peaked my interest is the Iphone4s. Since this will be my first iphone, lets use iphones as an example. After clicking through one of the websites on google I have landed on a site called securetradein.com This site has prices for Iphone 4s as well as other phones. This site will pay UP TO 285.00 for a 16gb Iphone 4s…..hmmm that sounds pretty good. Is it too good to be true? I clicked on the phone to find that a 285.00 is what they will pay for a BRAND NEW phone. A phone with heavy wear but still works would get you 172.00.
Take a look at another website….I am not gonna mention this one but it is pretty easy to find if you spend a few minutes clicking on google. This website charges a flat rate for the Iphone4s 16gb, 125.00. In fact, if you look around on this site it appears that 125.00 is the highest amount paid for a cell phone. This site is doing some charitable work so prices could effected by that but it still is a low number.
Now lets do some homework….I am not doing to do this step by step check out ebay pulse tutorial if you need to review.
A used Iphone4s 16gb
The search speaks for itself. If the first phone ends at 405.00 that would be a 275.00 dollar profit if bought for 125.00 like another website is doing already.
What does this mean?
Large websites need large profits like this because they need to pay multiple people, you are working for yourself. You could afford to pay more for a phone and make a little less profit (maybe you pay out 200.00) and make your customer happy by offering more cash on the spot. There is no need to deal with mail and waiting for an electronic transfer or shipping, you customer is walking away with 200.00 cash that they can do whatever they would like with! Now I am not going to say that these websites are the enemy because they are doing something for a VERY good cause, but you can market yourself as a fast convenient way to get cash!